Aims to strengthen presence through strong distribution
Last July, AMO bought out the distribution system from Allergan for $10 million and brought into its fold 50-plus people.
Mumbai, May 10
After having bought out its distribution system from Allergan last year in India, ophthalmic products company Advanced Medical Optics (AMO) is set to expand its network across the country.
The company was globally spun-off from Allergan in 2002 to form an independent company. But the distribution of AMO's products in India continued to be through Allergan, said Mr S. Ramanathan, AMO's Vice-President (Finance) for Asia-Pacific and Japan.
Last July, AMO bought out the distribution system from Allergan for $10 million and brought into its fold 50-plus people, he told
AMO is looking to increase its presence in India, supported by stronger distribution networks, he said. The strength of AMO's sales-force in India is set to increase to about 100 people in two years. The company also intends to employ contract sales employees to market its products locally, he added.
The Indian outfit, a wholly-owned subsidiary, was formalised in 2004. Plans to expand the distribution network are still being evaluated, Mr Ramanathan said, without giving details. The Indian arm looks to clock revenues of $20 million in 2006.
California-based AMO makes ophthalmic surgical products, refractive and eye-care products, besides developing technologies for eye disorders. It had tied-up with Nicholas Piramal India Ltd in late 2003 for select eye-care products.
Manufacturing locally is not on the cards for AMO and its products are imported from other locations including China.
Designs specific products
The company looks to grow its presence in the local market through specific products. It has also designed the value-pack specifically for the Indian market at competitive prices, said Mr Anand V. Mote, also with AMO.
When AMO was spun-off globally, it was a $550-million company and has now grown close to being a $1-billion company, Mr Ramanathan said. About 50 per cent of its global sales come from cataract implants, followed by eye-care solutions.
The Indian market has a huge potential for growth. About 85 per cent of local revenues come from the cataract implant business, he said.